Saturday, December 15, 2018
 National Foods to Close Two Australian Dairy Factories  

By Guy Montague-Jones

National Foods is closing two dairy factories in Australia as part of a consolidation plan that will result in 280 redundancies.

The move follows an operational review, initiated after the acquisition of the Dairy Farmers business in November 2008. It was decided that having four sites producing fresh and longer-life dairy food products was no longer sustainable, and that two should be closed.

Production at a site in Cobden, where long-life flavoured milk is made, will therefore be stopped in December and a factory in Wetherill Park, specialising in yogurt, is earmarked for closure in March 2012.

Operations director Arthur Murphy explained the decision to close the factories. “When we take into consideration the duplication in our manufacturing operations, Fonterra taking back production of its own Ski yogurt currently being made in Wetherill Park, the environmental impacts and costs of running four sites and the reduced demand for products manufactured at Cobden, the review identified that four sites were not viable in the long-term.”

Because two factories will be closed, National Foods is planning to invest $65.5m to upgrade its remaining site to help them meet demand. This investment will include upgrading existing equipment, installation of new equipment and training.

Source: Dairy Reporter

Posted on Wednesday, June 30, 2010 (Archive on Wednesday, July 07, 2010)
Posted by  Contributed by